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whether to sell endowment

I would be grateful for advice. should i sell standard life with profits endowment. Not needed to repay mortgage. Life insurance not needed. Start date15/02/1991. maturity 15/02/201; 6 years after retirement. Minthly premiums 38.80. Total current value £9,366.85. Bonus this year£46.92. Total bonuses £4,554.82. Minimum amount at maturity £14304.82. At3.75% will be worth £16200.00. At 5.5% £18600.00. Target amount £30000.00. Thank-you .

Comments

  • dunstonh
    dunstonh Posts: 120,891 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    What is the mortgage promise value maximum (although you dont have a mortgage for it anymore there value is still paid to you if it is required)?
    What is the current terminal bonus accrued on the policy? (it isnt included in the projections)
    I assume when you say current value that you mean surrender value?

    Current minimum maturity is £14,304.82. Surrender value is £9366.85. So, surrender/sell is going to cost you £4938. Can you verify the maturity date so we know what the remaining term is?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • maturity date 15/05/2016
    current terminal bonus £471.55
    mortgage promise value maximum £30000
    thanks
  • dunstonh
    dunstonh Posts: 120,891 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    That isnt the mortgage promise value. Wish it was though. You will probably have to phone up standard life to get it. You have given the target amount. You may have some old documents that make reference to the mortgage promise value. Whilst Std Life did water it down, it still retained a value although not as much as it would have been if they didnt water it down.

    However, i will point out a couple of things.

    You have about £4150 left to pay in remaining premiums. The surrender penalty is more than that. So if you pay the remaining £4150, you are guaranteed to get at least £4938 (difference between guaranteed minimum and surrender). Nearly £800 up.

    Plus, if you add the current terminal bonus on top and the mortgage promise value (which is likely to be a few thousands of pounds) you will get a lot more. Plus Std Life projections do tend to understate the end result so there is potential for more there.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Total current value £9,366.85
    It's the surrender value that we need to do the sums.It's obtainable over the phone.

    Do you still have a mortgage?If so, tell us the interest rate you're paying.
    Trying to keep it simple...;)
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